DeFi protocol Resupply has proposed burning six million reUSD tokens in its insurance pool as part of a recovery plan.
Resupply, a stablecoin protocol that leverages the liquidity of lending markets, was exploited for around $10 million earlier this week.
The attacker manipulated the share price of the platform’s crvUSD-wstUSR pair, specifically targeting the platform’s solvency check by exploiting an edge case in the oracle and exchange rate calculations, according to Resupply’s post mortem on June 28.
Since the exploit, the protocol paused the affected pair and temporarily blocked assets from leaving the insurance pool, which is a safety net to protect lenders and maintain the protocol’s stability.
“Stolen funds remain on-chain,” Resupply said in the post mortem. “The situation is being monitored and necessary steps are being taken.”
To offset the stolen 10 million tokens, the Resupply treasury has paid over 2.86 million reUSD tokens, leaving an outstanding bad debt of 7.13 million reUSD, the protocol’s recovery proposal said.
The latest recovery plan proposes burning 6 million reUSD of bad debt via the insurance pool, which is around 15.5% of the total amount of reUSD tokens in the pool.
“The remainder of bad debt (1,131,168 reUSD) will be paid off over time by the DAO through a mix of future revenue sources such as but not limited to protocol fees and/or potential RSUP OTC sales program to be decided on at a later date by treasury or governance,” the proposal said. RSUP is Resupply’s governance token.
The proposal, if passed, would be enacted three days after voting, Resupply said.
Resupply is also planning a retention program for users that had their deposits in the insurance pool and had their funds slashed when the proposal would be executed.
Users would be incentivized to stay in the insurance pool after the burning with an additional stream of RSUPs. Users can opt out and withdraw their funds from the pool, Resupply said.
“It is not intended to offset the slashing, though it may or may not do so,” the protocol noted.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
